prepaid debit card

A Prepaid Debit Card is used to help manage spending and credit managment problems

Parents can control their teenager's shopaholic spending with a pre paid student credit card

A prepaid debit card is also referred to as a guaranteed approval card or pre paid credit card. 

The appearance of a  prepaid card is exactly the same as a normal credit card. But that is where any  likeness ends.   Unlike a credit card, which allows  you (or your teen)to  rack up a credit debt, a prepaid credit card behaves just like a debit card.  It will only allow spending which is equal to the amount of funds in your prepaid card account.   You do not pay for finance fees or any interest fees since the charges are taken out of the balance that you prepay. 

There are however, other fees in a prepaid card that are different than found in a regular credit card.  When the money in the account is drawn down with charges and ATM cash withdrawals, the card needs to be recharged with more money. This is done with a cash deposit or  a wire transfer.

For concerned parents, this a great tool to help control spending by their teens.  It also provides insight into the purchases made by your teenager in an itemized list of charges for the past month. Certainly a nice feature you do not have if using cash only.    The prepaid card is also available for anyone who has other credit issues due to bankruptcy, newly divorced, no credit, bad employment, low credit rating and other financial history that prevents them from obtaining a traditional credit card.  Some of these prepaid cards also report to the credit bureaus and will help rebuild your damaged credit rating - building a positive credit history simply by running transactions through this card.  A huge advantage over paying with cash.

Prepaid credit cards are becoming very popular because they stop interest charges and are a better choice over cash and credit cards for anyone with a poor credit history.   Most prepaid debit card providers offer online applications and guaranteed approval.  The convenience of ATM cash withdrawal and credit card likeness, it is easy to see why a prepaid debit card is a wonderful option.